Category Archives for Airlines.
American Airlines CEO Doug Parker’s whole career is built on government subsidies. His airline is the most vulnerable to bankruptcy. So when the chips are down they’re playing the game that’s worked out best for him: threatening small cities where American Airlines has a virtual monopoly on air service, and announcing cuts to 15 cities that impose pain on 28 different Senators.
To avoid assigning any middle seats on a narrowbody aircraft with six seats across, that means blocking one-third of the seats in coach (67% load factor). Delta has been capping sales at 60% of the seats in coach. Starting October 1 they are going to be selling more seats, up to 75% of the seats in coach on each plane. That means filling each cabin 25% more than before.
American Airlines is suspending service to 15 cities effective October 7, and CARES Act subsidies are mentioned 3 times in the release that’s just 151 words. The airline makes clear that if a second bailout passes they’re prepared to serve these markets.
Virgin Atlantic like all other airlines is struggling during the pandemic. They’re in the midst of a restructuring and they’ve only just restarted flying last month to 6 cities.
Previously they had only extended member elite status by six months. They’ve gone ahead and made that now a full year, extending elite vouchers too. And they’re introducing changes to their frequent flyer elite program that are actually positive. The biggest change is that award travel will earn elite qualifying credit starting September 1. You’ll be able to transfer points from a credit card, fly, and earn top tier elite.
JetBlue’s face mask policy says anyone who cannot wear a mask “should postpone travel until this temporary requirement is no longer in place.” And JetBlue has now enforced their policy against a two year old on a flight from Orlando to Newark.
United Airlines flight UA79 was delayed three hours on Sunday due to a crew scheduling issue. Flight delays happen all the time, and a three hour delay of an international flight isn’t usually devastating during normal times.
However with limited air service, as a result of depressed demand during the pandemic, and international border restrictions a small delay can turn much more challenging for travelers – especially those trying to connect between secondary cities.
LifeMiles is selling miles in their Star Alliance program for about 1.2 cents apiece. That’s a great deal, but associated airline Avianca is in bankruptcy. Is it safe to take advantage of the offer?
Former Spirit Airlines CEO is a JetBlue board member and naturally thinks more of that sweet, sweet taxpayer cash ought to flow to airlines. He lays out what he calls misconceptions about government aid to airlines as he makes the case for the second government bailout of the industry this year.
Baldanza’s piece is a breath of fresh air though because it honestly talks about government subsidies as more than just an unemployment program. He takes seriously government support as an airline bailout, ensuring airlines are providing capacity to the economy, and doesn’t offer the fiction that it’s only about supporting the workers.
Now we have serious arguments worth answering.
Ethiopian Airlines ran a repatriation flight this weekend from Houston to Lagos, Nigeria. There were more people who showed up at the airport than seats. The $1500 one-way flight had a waiting list, and numerous people were looking to get on.
After boarding local Nigerian officials identified no shows and empty seats and started to auction those off, reportedly pocketing an extra $250 apiece for themselves. But it took six hours to get the seats sold at the higher price, especially since the delay meant some of the passengers started getting off the plane – more seats for the officials to sell at a markup.
Airlines and their unions have asked for a ‘clean extension’ of the payroll support money, another $25 billion. However if that’s to save 75,000 jobs through March 31, 2021 that amounts to $333,333 per job and come April 1 we’ll see job losses again (when it’s not election season).
Seriously, has anybody actually done the math here?
Gary Leff is one of the foremost experts in the field of miles, points, and frequent business travel -- a topic he has covered since 2002.
Co-founder of frequent flyer community InsideFlyer.com, emcee of the Freddie Awards, and named one of the "World's Top Travel Experts" by Conde' Nast Traveler (2010-Present) Gary has been a guest on most major news media, profiled in several top print publications, and published broadly on the topic of consumer loyalty. More About Gary »
